I'm in Oakland and host. Half way through 2015 AirBnB started automatically collecting and paying occupancy taxes for my rental at 14%. I have to pay out of pocket to the city of Oakland for the first half of the year occupany tax.
I assume I can deduct from my federal income the taxes I paid out-of-pocket for the first half of the year.
Can I also deduct the taxes automatically paid by AirBnB to the city of Oakland? Those taxes never went into my account but they potentially did reduce my gross income by reducing the number of nights rented.